Banks Slow the Slow-Motion Melt-Up

https://trendmacro.com/system/files/reports/20110121TrendMacroLuskinFG.pdf
Donald L. Luskin
Friday, January 21, 2011
Misses at three big banks haven't changed the overall earnings outlook.
US Stocks
Earnings disappointments in the financial sector have slowed the slow-motion melt-up in stocks . But we don't expect much of a correction. We see no risk here to the fundamental idea of a march back to all-time high forward earnings and all-time high levels of the stock market.
US Financial Stocks
Misses by Bank of America, Citigroup and Wells Fargo have disproportionately dinged earnings season so far. But this is a sector-specific problem -- in a post-subprime post-Dodd/Frank world, there's a recovery model for the financials, but no growth model.